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- Articles and reports: 11-633-X2019004Description:
This paper shows how to estimate the effect of the Canada-United States border on non-energy goods trade at a sub-provincial/state level using Statistics Canada’s Surface Transportation File (STF), augmented with United States domestic trade data. It uses a gravity model framework to compare cross-border to domestic trade flows among 201 Canadian and United States regions in year 2012. It shows that some 25 years after the Canada-United States Free Trade Agreement (the North American Free Trade Agreement’s predecessor) was ratified, the cost of trading goods across the border still amounts to a 30% tariff on bilateral trade between Canadian and United States regions. The paper also demonstrates how these estimates can be used along with general equilibrium Poisson pseudo maximum likelihood (GEPPML) methods to describe the effect of changing border costs on North American trade patterns and regional welfare.
Release date: 2019-09-24 - Articles and reports: 11F0027M2008052Geography: CanadaDescription:
Over the past three decades, tariff barriers have fallen significantly, leading to an increasing integration of Canadian manufactures into world markets and especially the U.S. market. Much attention has been paid to the effects of this shift at the national scale, while little attention has been given to whether these effects vary across regions. In a country that spans a continent, there is ample reason to believe that the effects of trade will vary across regions. In particular, location has a significant effect on the size of markets available to firms, and this may impact the extent to which firms reorganize their production in response to falling trade barriers. Utilizing a longitudinal microdata file of manufacturing plants (1974 to 1999), this study tests the effect of higher levels of trade across regions on the organization of production within plants. The study finds that higher levels of export intensity (exports as a share of output) across regions are positively associated with longer production runs, larger plants and product specialization within plants. These effects are strongest in Ontario and Quebec, provinces that are best situated with respect to the U.S. market.
Release date: 2008-05-09 - Articles and reports: 11-621-M2007064Geography: CanadaDescription:
The evolution in international trade by the ICT sector, particularly in commercial services, is examined by type of service, industry, major trading partners and affiliation of the companies involved.
Release date: 2007-11-26 - 4. How Are Canadian Regions Adjusting to a Larger and More Integrated North American Market? ArchivedArticles and reports: 11F0027M2006039Geography: CanadaDescription:
This paper relates to two understudied, but increasingly important concerns: the measurement of regional integration, and the regional benefits to North American economic integration. The objective is to measure Canada's regional integration in manufacturing industries with that of the United States, and examine the regional impact of growing trade integration on productivity growth and select other economic performance variables.
Our research shows that Canada and each of its regions are becoming more integrated in trade in manufactures with the United States, but Ontario is much more integrated than the rest of Canada. While all regions have benefited through improved productivity performance, higher wages and higher output growth, Ontario has been the principal beneficiary. No evidence was found that increased trade integration in manufactures with the United States caused anything more than short-run adjustment losses in employment. Canada and each of its regions have expanded their share of North American manufacturing which stands in sharp contrast to the supposition that it would be the United States that would experience a growth in North American production share (Krugman, 1980).
Release date: 2006-05-31 - 5. Demand for Skills in Canada: The Role of Foreign Outsourcing and Information-communication Technology ArchivedArticles and reports: 11F0027M2005035Geography: CanadaDescription:
This study examines the impact of information and communication technologies (ICT) and of foreign outsourcing on the demand for skilled workers. One of the defining features of the Canadian economy in the last two decades has been an increasing wage gap between more- and less-skilled workers. Over the same period, there have been dramatic increases in expenditures on information and communication technologies and in purchases of foreign intermediate inputs. Using data for 84 Canadian manufacturing industries over the 1981-1996 period, we find that both ICT and foreign outsourcing are important contributors to the demand for skills.
Release date: 2005-10-28 - Articles and reports: 11F0027M2005031Geography: CanadaDescription:
This paper studies the impact that a small country joining a regional trade agreement, but particularly a small country, might be expected to gain from the exploitation of scale economies. It makes use of the experience of Canada when it entered into the Canada-United States Free Trade Agreement (FTA) in the early 1990s.
It finds that there was a general increase in the pace of plant commodity specialization around the time of implementation of the Free Trade Agreement. At the time of the treaty, plant diversity was found to be higher in larger plants and in industries with assets that are associated with scope economies. Diversity was also higher in industries that had higher rates of tariff protection.
Over the 1980s and 1990s, plant diversity decreased with reductions in both U.S. and Canadian tariffs. And the decline was greater during the post FTA era than before, thereby suggesting that this treaty had an impact above and beyond that just engendered by the tariff reductions that were associated with it. The study also found that foreign-controlled plants tended to adjust more over the entire period.
Release date: 2005-03-24 - 7. Canada's textile and clothing industries ArchivedArticles and reports: 11-010-X20050037804Geography: CanadaDescription:
A profile of jobs, productivity, output and trade in these industries as they enter a new trade era without import quotas.
Release date: 2005-03-17 - 8. Changing Trade Barriers and Canadian Firms: Survival and Exit After the Canada-U.S. Free Trade Agreement ArchivedArticles and reports: 11F0019M2004205Geography: CanadaDescription:
This paper considers the implications of changing trade barriers on the survival of Canadian manufacturing firms. A segmented market Cournot model was developed to describe the effects of trade liberalization for heterogeneous firms operating in diverse industries. The predictions of this model are tested empirically using firm-level data for both public and private corporations and tariff rates for both Canada and the United States. Our findings suggest that Canadian tariff reductions decreased the probability of the survival of Canadian firms while declines in American tariffs increased the probability. Combining these two effects, firms in two-thirds of Canadian manufacturing industries saw their probability of survival increase as a result of the tariff reductions mandated by the Canada-U.S. Free Trade Agreement. However, the sensitivity of individual firms to tariff changes was mitigated by the characteristics of those firms. In particular, productivity and leverage played substantial roles in determining a firm's vulnerability to failure as a result of trade liberalization.
Release date: 2004-04-28 - 9. Beverage and Tobacco Products Industries ArchivedJournals and periodicals: 32-251-XDescription:
The most recent issue contains the article "The beverage industries: two markets" by Peter Zylstra.This paper presents recent developments in the Beverage Industries. Following a brief introduction, the industry is analysed in terms of the four component sub-industries, which fall into two groups: soft drinks and alcoholic beverages. The two groups constitute different overall markets. The summary of recent developments is based on results of the 1997 Annual Survey of Manufactures (ASM). Other sources are used to provide industry environment and economic backgroun.
Release date: 2000-04-01 - 10. Clothing Industries ArchivedJournals and periodicals: 34-252-XDescription:
The latest issue contains the article "Has the Clothing Industry adapted to the changing economic environment?" by Yasmin Sheik. The clothing industry consists of establishments engaged in the production of men's, boys', women's, and children's wear as well as furs, foundation garments, hosiery, gloves, sweaters and occupational clothing.
The clothing industry is labour intensive and requires only a limited number of special skills, and therefore it exists in almost every country in the world. In the past, developed countries, including Canada, restricted competition in this sector from low-wage developing countries by the imposition of country-specific import quotas. However, a change in trade policies has resulted in the reduction of trade barriers and increased competition. The Canadian Clothing and Textile industries now fall under the normal trading rules of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) besides being part of the North American rationalization process under the Free Trade Agreement (FTA) with the United States and the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico.
Using data from the Annual Survey of Manufactures for 1988 to 1997, this paper will show how the Canadian Clothing Industry has adapted to the changing economic environment. It will also comment on the recent period of growth using the Monthly Survey of Manufacturing and other indicators.
Release date: 1999-12-01
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Analysis (11)
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- Articles and reports: 11-633-X2019004Description:
This paper shows how to estimate the effect of the Canada-United States border on non-energy goods trade at a sub-provincial/state level using Statistics Canada’s Surface Transportation File (STF), augmented with United States domestic trade data. It uses a gravity model framework to compare cross-border to domestic trade flows among 201 Canadian and United States regions in year 2012. It shows that some 25 years after the Canada-United States Free Trade Agreement (the North American Free Trade Agreement’s predecessor) was ratified, the cost of trading goods across the border still amounts to a 30% tariff on bilateral trade between Canadian and United States regions. The paper also demonstrates how these estimates can be used along with general equilibrium Poisson pseudo maximum likelihood (GEPPML) methods to describe the effect of changing border costs on North American trade patterns and regional welfare.
Release date: 2019-09-24 - Articles and reports: 11F0027M2008052Geography: CanadaDescription:
Over the past three decades, tariff barriers have fallen significantly, leading to an increasing integration of Canadian manufactures into world markets and especially the U.S. market. Much attention has been paid to the effects of this shift at the national scale, while little attention has been given to whether these effects vary across regions. In a country that spans a continent, there is ample reason to believe that the effects of trade will vary across regions. In particular, location has a significant effect on the size of markets available to firms, and this may impact the extent to which firms reorganize their production in response to falling trade barriers. Utilizing a longitudinal microdata file of manufacturing plants (1974 to 1999), this study tests the effect of higher levels of trade across regions on the organization of production within plants. The study finds that higher levels of export intensity (exports as a share of output) across regions are positively associated with longer production runs, larger plants and product specialization within plants. These effects are strongest in Ontario and Quebec, provinces that are best situated with respect to the U.S. market.
Release date: 2008-05-09 - Articles and reports: 11-621-M2007064Geography: CanadaDescription:
The evolution in international trade by the ICT sector, particularly in commercial services, is examined by type of service, industry, major trading partners and affiliation of the companies involved.
Release date: 2007-11-26 - 4. How Are Canadian Regions Adjusting to a Larger and More Integrated North American Market? ArchivedArticles and reports: 11F0027M2006039Geography: CanadaDescription:
This paper relates to two understudied, but increasingly important concerns: the measurement of regional integration, and the regional benefits to North American economic integration. The objective is to measure Canada's regional integration in manufacturing industries with that of the United States, and examine the regional impact of growing trade integration on productivity growth and select other economic performance variables.
Our research shows that Canada and each of its regions are becoming more integrated in trade in manufactures with the United States, but Ontario is much more integrated than the rest of Canada. While all regions have benefited through improved productivity performance, higher wages and higher output growth, Ontario has been the principal beneficiary. No evidence was found that increased trade integration in manufactures with the United States caused anything more than short-run adjustment losses in employment. Canada and each of its regions have expanded their share of North American manufacturing which stands in sharp contrast to the supposition that it would be the United States that would experience a growth in North American production share (Krugman, 1980).
Release date: 2006-05-31 - 5. Demand for Skills in Canada: The Role of Foreign Outsourcing and Information-communication Technology ArchivedArticles and reports: 11F0027M2005035Geography: CanadaDescription:
This study examines the impact of information and communication technologies (ICT) and of foreign outsourcing on the demand for skilled workers. One of the defining features of the Canadian economy in the last two decades has been an increasing wage gap between more- and less-skilled workers. Over the same period, there have been dramatic increases in expenditures on information and communication technologies and in purchases of foreign intermediate inputs. Using data for 84 Canadian manufacturing industries over the 1981-1996 period, we find that both ICT and foreign outsourcing are important contributors to the demand for skills.
Release date: 2005-10-28 - Articles and reports: 11F0027M2005031Geography: CanadaDescription:
This paper studies the impact that a small country joining a regional trade agreement, but particularly a small country, might be expected to gain from the exploitation of scale economies. It makes use of the experience of Canada when it entered into the Canada-United States Free Trade Agreement (FTA) in the early 1990s.
It finds that there was a general increase in the pace of plant commodity specialization around the time of implementation of the Free Trade Agreement. At the time of the treaty, plant diversity was found to be higher in larger plants and in industries with assets that are associated with scope economies. Diversity was also higher in industries that had higher rates of tariff protection.
Over the 1980s and 1990s, plant diversity decreased with reductions in both U.S. and Canadian tariffs. And the decline was greater during the post FTA era than before, thereby suggesting that this treaty had an impact above and beyond that just engendered by the tariff reductions that were associated with it. The study also found that foreign-controlled plants tended to adjust more over the entire period.
Release date: 2005-03-24 - 7. Canada's textile and clothing industries ArchivedArticles and reports: 11-010-X20050037804Geography: CanadaDescription:
A profile of jobs, productivity, output and trade in these industries as they enter a new trade era without import quotas.
Release date: 2005-03-17 - 8. Changing Trade Barriers and Canadian Firms: Survival and Exit After the Canada-U.S. Free Trade Agreement ArchivedArticles and reports: 11F0019M2004205Geography: CanadaDescription:
This paper considers the implications of changing trade barriers on the survival of Canadian manufacturing firms. A segmented market Cournot model was developed to describe the effects of trade liberalization for heterogeneous firms operating in diverse industries. The predictions of this model are tested empirically using firm-level data for both public and private corporations and tariff rates for both Canada and the United States. Our findings suggest that Canadian tariff reductions decreased the probability of the survival of Canadian firms while declines in American tariffs increased the probability. Combining these two effects, firms in two-thirds of Canadian manufacturing industries saw their probability of survival increase as a result of the tariff reductions mandated by the Canada-U.S. Free Trade Agreement. However, the sensitivity of individual firms to tariff changes was mitigated by the characteristics of those firms. In particular, productivity and leverage played substantial roles in determining a firm's vulnerability to failure as a result of trade liberalization.
Release date: 2004-04-28 - 9. Beverage and Tobacco Products Industries ArchivedJournals and periodicals: 32-251-XDescription:
The most recent issue contains the article "The beverage industries: two markets" by Peter Zylstra.This paper presents recent developments in the Beverage Industries. Following a brief introduction, the industry is analysed in terms of the four component sub-industries, which fall into two groups: soft drinks and alcoholic beverages. The two groups constitute different overall markets. The summary of recent developments is based on results of the 1997 Annual Survey of Manufactures (ASM). Other sources are used to provide industry environment and economic backgroun.
Release date: 2000-04-01 - 10. Clothing Industries ArchivedJournals and periodicals: 34-252-XDescription:
The latest issue contains the article "Has the Clothing Industry adapted to the changing economic environment?" by Yasmin Sheik. The clothing industry consists of establishments engaged in the production of men's, boys', women's, and children's wear as well as furs, foundation garments, hosiery, gloves, sweaters and occupational clothing.
The clothing industry is labour intensive and requires only a limited number of special skills, and therefore it exists in almost every country in the world. In the past, developed countries, including Canada, restricted competition in this sector from low-wage developing countries by the imposition of country-specific import quotas. However, a change in trade policies has resulted in the reduction of trade barriers and increased competition. The Canadian Clothing and Textile industries now fall under the normal trading rules of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) besides being part of the North American rationalization process under the Free Trade Agreement (FTA) with the United States and the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico.
Using data from the Annual Survey of Manufactures for 1988 to 1997, this paper will show how the Canadian Clothing Industry has adapted to the changing economic environment. It will also comment on the recent period of growth using the Monthly Survey of Manufacturing and other indicators.
Release date: 1999-12-01
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